While the overall economic picture remains cloudy, the city of American Canyon’s revenues continue to grow.

According to mid-year budget figures released Tuesday, the city will collect $1.9 million in sales tax this year — or 6.3 percent more than a year ago.

The increase is thanks in part to retail sales tax from the Napa Junction retail center, where a Wal-Mart Supercenter opened in the fall. The supercenter is offsetting lower revenues from construction-related businesses, said American Canyon City Councilman Don Callison.

“In my opinion, Wal-Mart is a big contributor in keeping us above water,” Callison said Wednesday.

While city officials said they could not disclose which business was the top sales tax generator, they have indicated in past reports that Wal-Mart could generate $400,000 a year in sales tax revenues.

New retail outlets coming to Napa Junction include a hotel, a Sonic fast food restaurant and a Chevron station.

While the city is seeing a boost in sales tax, property sales tax revenues are not expected to meet expectations. The city expects $7 million in property sales tax — about $500,000 less than projected, but $600,000 more than last year.

About half of the city’s $16 million general fund budget comes from property taxes.

Finance Director Barry Whitley said that the city will have to remain cautious with its money, particularly in light of the state’s $16 billion budget shortfall.

No one knows what the state will do next, he said, referring to the possibility that Sacramento could borrow up to 8 percent of the city’s property tax revenues — or $490,000.

Still, the city is “doing pretty well,” Whitley said.

After hearing the latest budget figures, the City Council voted to hire a fourth sergeant for the American Canyon Police Department.

“I’d like to have that done as soon as possible,” City Councilman Ed West said.

The City Council is expected to confirm the hire Tuesday.

Police Chief Brian Banducci said a new sergeant could be on board two weeks later.

Other requests for more city staff, including two new public works and two new community services employees, will remain on the deferred list. So will such items as a $60,000, inflatable swimming pool bubble to cover the municipal pool and keep swimmers warm during the winter months.

Citing larger economic trends, City Manager Rich Ramirez called for caution. “What we don’t want is overcommit when the trend is down,” Ramirez said.